The Importance of Business Ethics to Small Ventures

Abstract

This paper examines the importance of ethics to small ventures. The author defines the vulnerability problem of small businesses and defines business ethics as stemming from an understanding that all businesses have stakeholders and that their actions affect these stakeholders including society. The author explores the literature and body of knowledge or variables constituting the ethical basis or ethical obligations of small businesses, and the standards of business ethics, and the ethical challenges facing small businesses. The author identifies four areas in which ethics is especially important to small venture practices, and proposes three major approaches or solutions in addressing the challenge of ethics in small businesses. Finally, several recommendations are made for improving ethical practices that create value for customers and contribute to greater success, image and reputation building, and competitive advantage for small business ventures.